Residence nil-rate band calculator

Everyone can leave up to £325,000 of their total estate free of inheritance tax (the nil-rate band), provided this allowance hasn’t been used when making gifts, for example, or settling assets into trust. Your client’s estate is the sum of their savings, investments, the market value of the house they live in and their other assets.

But there’s an additional inheritance tax allowance – the residence nil-rate band (RNRB) – which can be claimed by the estates of people who die after 6 April 2017. By filling in your answers below, our calculator will estimate the degree to which the RNRB may benefit your client – and therefore gives some indication of the inheritance tax due on your client’s estate.

Some things to keep in mind

Please note that inheritance tax is a complicated topic and this calculator is intended to help you understand some of the key areas. It has been prepared in good faith and is based on our understanding and interpretation of the current law. Keep in mind that client-specific circumstances that are outside of the scope of this calculator may result in different levels of inheritance tax being due and legislation may change in the future. A tax adviser will be able to take your client’s personal circumstances into account and give up to date advice based on the legislation in place at the time.

1
Assess your situation
House
How much is your house worth?
?
Pound Sterling
House
Other properties
?
Pound Sterling
House
Savings
?
Pound Sterling
House
Investments
?
Pound Sterling
House
Other
?
Pound Sterling
Based on the estimated figures you have entered, this gives an estate value of:
House value: £ 0

Value of other assets: £ 0

Total estate value: £ 0

As your estate is worth more than £2 million, the RNRB may be restricted or not available at all. We have assumed that your estate will not benefit from any additional RNRB, but recommend that you seek professional advice specific to your situation.

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2
Your marital status
What is your marital status? ?
  • Married/Civil partnership

  • Widowed

  • Unmarried/Divorced

Assets left to spouses are not normally subject to inheritance tax. It may be useful for you to provide information for the value of your joint estate if you would expect to inherit all of your spouse's assets.

Did your spouse leave all their assets to you?

Yes

No

Did your spouse or civil partner use all of their nil-rate band? ?

Yes

No

How much did they leave unused?

Pound Sterling

Was the value of your spouse's estate more than £2 million when they died? Warning icon

Yes

No

Warning icon

If your spouse's estate exceeded £2 million, your entitlement to an additional RNRB may be reduced, or even eliminated. We have assumed that your estate will not benefit from any additional RNRB from your spouse, but recommend that you seek professional advice as to your specific situation.

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3
Plan for the future
House

Did you sell your home before 8 July 2015? Warning icon

Yes

No

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4
Year by year results
Select one of the two buttons below to see how the residence nil-rate band might apply to your situation. The calculator assumes that you die in the tax year which is checked below.

The residence nil-rate band is £150,000 for the 2019-20 tax year. In April 2020 it will increase to £175,000. It will then increase every year in line with inflation, as measured by the Consumer Price Index.
Select one of the two buttons below to see how the residence nil-rate band might apply to your situation. The calculator assumes that you die in the tax year which is checked below.

The residence nil-rate band is £150,000 for the 2019-20 tax year. In April 2020 it will increase to £175,000. It will then increase every year in line with inflation, as measured by the Consumer Price Index.

2019/2020

2020 and beyond

Please read

We hope this calculator has been helpful for you and your clients. Remember, whatever inheritance tax liability we’ve calculated for your client’s estate, the value of their property and assets is likely to change over time. This means their estate could face a different inheritance tax liability in the future. If they want to know more, our guide to inheritance tax can help you walk them through their options.

Next step

Download our client-friendly guide to inheritance tax

Visit our Estate Planning Hub for five steps to help maximise your business.